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UnitedHealth Receives FTC Approval For DaVita Deal

UnitedHealth Group Inc (UNH) received anti-trust approval to buy DaVita Inc's primary and urgent care unit for $4.3 billion, the Federal Trade Commission said.

UnitedHealth Group and DaVita Inc. have agreed to a settlement to resolve Federal Trade Commission allegations that UnitedHealth Group's proposed $4.3 billion acquisition of DaVita's DaVita Medical Group will harm competition in healthcare markets in Clark and Nye Counties, Nevada.

As per the proposed settlement, no later than 40 days after the acquisition is final, UnitedHealth Group will divest DaVita Medical Group's healthcare provider organization in the Las Vegas Area to Utah-based healthcare provider and insurer Intermountain Healthcare.

The complaint alleged that without a remedy in the Las Vegas Area, the proposed acquisition will likely reduce competition in the markets for Managed care provider organization (MCPO) services sold to Medicare Advantage insurers; and Medicare Advantage plans sold to individual Medicare Advantage members.

Under the proposed settlement order, in addition to the divestiture obligations, UnitedHealth Group and DaVita are required to provide transition assistance to Intermountain Healthcare that includes access to and use of intellectual property and business equipment and information; properly transfer all confidential business information.

UnitedHealth's Optum unit said that it completed its acquisition of DaVita Medical Group from DaVita. As part of the transaction, HealthCare Partners Nevada, DaVita Medical Group's primary care practice in southern Nevada, will become part of Intermountain Healthcare.

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